KUALA LUMPUR (Sept 24): Malaysia is among six major Asia-Pacific economies expected to record faster real gross domestic product (GDP) growth than China in 2026, supported by its integration into the artificial intelligence (AI) supply chain, according to Moody’s Analytics.

In its “Asia-Pacific Outlook: RAMpocalypse Now” report, Moody’s Analytics said Taiwan, Singapore, Malaysia, India, Vietnam and Indonesia are projected to grow faster than China this year.

“GDP growth in the Asia-Pacific region will slow in 2026. But economies most deeply integrated into the AI supply chain will buck the trend. Taiwan, South Korea, Singapore, and Malaysia will grow faster in 2026 than in 2025. All but South Korea will outpace China this year,” it said. 

The report indicated that strong demand for semiconductors and other technology products has increased exports from Taiwan, South Korea, mainland China, and some Southeast Asian regions, balancing out weaknesses in other areas.

Moody’s Analytics said that nominal goods exports from South Korea and Taiwan surpassed Japan’s in the first half of 2026 for the first time.

However, it expects Asia-Pacific's overall economic growth to moderate to 4.3% in 2026 from 4.4% in 2025, before slowing further to 3.7% in 2027.

It said higher prices and tighter monetary policy, partly stemming from the conflict in West Asia, are expected to weigh on household demand and investment in traditional manufacturing and services.

On monetary policy, Moody’s Analytics said Malaysia and Taiwan have kept interest rates unchanged despite tightening by several other regional central banks, although both have room to raise rates if necessary.

Uploaded by Tham Yek Lee